US President Donald Trump on Friday urged Federal Reserve chair Jerome Powell to cut interest rates and criticized him for being “late.”
“This would be a PERFECT time for Fed Chairman Jerome Powell to cut Interest Rates,” he said on Truth Social.
“He is always ‘late,’ but he could now change his image, and quickly,” Trump added.
Pointing to the decline in energy prices, interest rates, inflation and even egg prices and the increase in employment in two months, Trump said: “A BIG WIN for America. CUT INTEREST RATES, JEROME, AND STOP PLAYING POLITICS!”
Trump’s call to cut rates came before Powell said that the reciprocal tariffs were “larger than expected.”
Powell also said that higher tariffs will likely result in higher inflation and slower growth.
“We have stressed that it will be very difficult to assess the likely economic effects of higher tariffs until there is greater certainty about the details, such as what will be tariffed, at what level and for what duration, and the extent of retaliation from our trading partners,” he said at a conference in Virginia.